New Excise Duty Rules Might Raise CKD Car Prices By Up To 20% Starting In 2023; MAA Is Requesting An Extension.

According to the Malaysian Automotive Association (MAA), the price of locally built vehicles (CKD) will increase by eight to twenty percent starting next year if the government chooses not to extend the period of exemption of new vehicle excise duty.

The matter was confirmed by MAA President, Datuk Aishah Ahmad after chairing the MAA Annual Meeting at the Sheraton Hotel, Petaling Jaya, this morning.

For the record, excise duty was actually deferred in 2020 until the end of 2022. As a result, it will be reintroduced in 2023.

“We have asked the government to return the old arrangement to curb the increase in CKD car prices”

Commenting further on the matter, she said a letter of application to the Ministry of Finance (MOF) had been sent to return the old policy.

"Currently, the government has not responded to the application" she said.

If the government decides to resume the previous approach, it will solely consider production costs, which could result in a reduction in vehicle pricing.

"On the other hand, if the government does not extend the excise duty exemption period then all CKD vehicles will increase by eight to 20 per cent," she added.